1 Business Integration Update to PRS Troy Anderson ERCOT Enterprise Project Portfolio Management October 20, 2011

2 Business Integration Update – Agenda –2011 Project Portfolio Update p. 3-7 Upcoming Project Go-Lives Project Portfolio Gantt Chart –2011 Project Spending Update p. 8 –ERCOT FTE Tracking p. 9 –Multi-Year PPL Update and 2012 Release Plan p. 10

3 Project Portfolio – Upcoming Activities Go-Lives Planned for October / (No November release ) –PR – Data Agg Performance Improvements Project to address data aggregation processing performance risk –NPRR258 – Sync with PRR824 and PRR833 and Additional Clarifications –SCR762 – Enable Single Step Cancel/Resubmit of Trades –NPRR320 – Minimum PTP Option Bid and Settlement –SCR766 – Load Zone and Hub LMPs Distributed by ICCP –IT Security Infrastructure Upgrade –SCR764 – Public Access to Select MIS Dashboards Oct. – 3 rd phase – SCED Up/Down Dashboard –SCR760 – Recommended Changes Needed for Information Model Mgr and Topology Processor Oct. – Deliverables 3, 7, and 8 –Stabilization/Deferred Defects Oct. – Release 9 Note: Projected Go-Live dates are subject to change. Please watch for market notices as the effective dates approach.

4 Project Portfolio Status – as of 10/17/2011

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Project Spending Update – 10/17/2011 PPLInitial BudgetCurrent BudgetForecastYTD Actual Data Center Hardware $ 33,715,000$ 28,178,937$ 24,548,629$ 20,911,765 Other Projects $ 8,185,000 $ 7,627,112$ 3,689,343 Totals $ 41,900,000$ 36,363,937$ 32,175,741$ 24,601,108 * Data Center Hardware Budget reduced by the amount of purchasing accelerated from 2011 to 2010 (~$5.5M) *

9 ERCOT FTE Tracking Summary of FTE Impact of Revision Requests - By Department --- Board Approved --- Incremental Labor Impact of Change Net ERCOT Staffing Impact Revision Request DivisionDepartment Name Labor Effort (in FTEs) Additional FTEs Required Budget Impact Status / Comments SCR760OperationsNetwork Modeling Absorbed in 2012 budget and staffing plan NPRR286CorporateCredit Absorbed in 2012 budget and staffing plan NPRR320Operations Congestion Revenue Rights Manual workaround no longer needed after project implementation in October 2011 NPRR343OperationsMarket Analysis Manual workaround no longer needed after project implementation in December 2011 NPRR365OperationsOutage Coordination $240k- $260k Board approved - 9/20/2011 NOGRR054Compliance Absorbed in 2012 budget and staffing plan Board-Approved Items In-Flight at TAC --- None In-Flight at TAC Total of All Items 6.802

10 Project Portfolio – Multi-Year PPL and 2012 Release Plan In August, the Board approved 2012 project funding in the amount of $15M –The supporting PPL materials included project forecasts for –The PPL format is being changed to accommodate a multi-year view Also in progress is a forecast of project implementations in 2012 –6 releases (1 every other month) Occasional off-cycle releases when necessary –Includes projects forecasted on the Board-approved PPL… plus… –Revision Requests approved in the stakeholder process since August 17 NPRRs and 1 SCR –Projects in the 1 st 2012 release will be initiating in November/December The new PPL and release plan will be presented to PRS in November –Resource availability analysis currently underway An added benefit to the multi-year PPL is that the yearly project prioritization process should become a confirmation of what is planned for the upcoming year (rather than the current bottom up approach)